UNION CITY, Calif.,
April 25, 2013 /PRNewswire/
-- Abaxis, Inc. (NasdaqGS: ABAX), a medical products company
manufacturing point-of-care blood analysis systems, today reported
financial results for the fourth quarter and fiscal year ended
March 31, 2013.
Record fourth quarter and fiscal 2013 results include:
- Revenues of $50.0 million for the
fourth quarter, up 17% over last year's comparable quarter, and
$186.0 million for fiscal 2013, up
19% year-over-year.
- North America revenues of
$41.9 million for the fourth quarter,
up 18% over last year's comparable quarter, and $152.8 million for fiscal 2013, up 18%
year-over-year.
- Veterinary market revenues of $42.9
million for the fourth quarter, up 25% over last year's
comparable quarter, and $150.5
million for fiscal 2013, up 23% year-over-year.
- Total medical and veterinary reagent disc sales of $27.0 million for the fourth quarter, up 14% over
last year's comparable quarter, and $99.3
million for fiscal 2013, up 13% year-over-year.
Other fourth quarter and fiscal 2013 highlights include:
- International revenues of $8.1
million for the fourth quarter, up 10% over last year's
comparable quarter, and $33.3 million
for fiscal 2013, up 20% year-over-year.
- Total medical and veterinary instrument revenues of
$10.6 million for the fourth quarter,
up 8% over last year's comparable quarter, and $46.0 million for fiscal 2013, up 31%
year-over-year.
- Total medical and veterinary instrument sales of 1,485 units
for the fourth quarter, up 13% over last year's comparable quarter,
and 6,173 units for fiscal 2013, up 30% year-over-year.
- Total medical and veterinary reagent disc sales of 2.0 million
units for the fourth quarter, up 11% over last year's comparable
quarter, and 7.5 million units for fiscal 2013, up 11%
year-over-year.
- Diluted net income per share of $0.30 for the fourth quarter, up 43% over last
year's comparable quarter.
- Service revenues from Abaxis Veterinary Reference Laboratories
(AVRL) of $1.8 million for the fourth
quarter, up 31% over the third quarter of fiscal 2013.
Quarterly Results: For the fiscal quarter ended
March 31, 2013, Abaxis reported
revenues of $50.0 million, as
compared with revenues of $42.7
million for the comparable period last year, an increase of
17 percent. Revenues from sales of instruments, which include
chemistry analyzers, hematology instruments, VSpro specialty
analyzers and i-STAT analyzers, increased by an aggregate of
$0.8 million or 8 percent, over the
same period last year. Revenues from sales of consumables,
which include reagent discs, hematology reagent kits, VSpro
specialty cartridges, i-STAT cartridges and rapid tests, increased
by an aggregate of $5.0 million, or
16 percent, over the same period last year. Abaxis reported
net income of $6.7 million for the
fiscal quarter ended March 31, 2013,
compared to $4.7 million for the same
period last year, an increase of 42 percent. Abaxis'
effective tax rate in the quarter ended March 31, 2013 was 25 percent, compared to 32
percent for the same period last year. Abaxis reported
diluted net income per share of $0.30
(calculated based on 22,486,000 shares) for the three-month period
ended March 31, 2013, compared to
$0.21 per share (calculated based on
22,070,000 shares) for the same period last year.
Fiscal 2013 Results: For the fiscal year ended
March 31, 2013, Abaxis reported
revenues of $186.0 million, as
compared with revenues of $156.6
million for the prior year, an increase of 19 percent.
Revenues from instruments increased by an aggregate of
$10.9 million, or 31 percent, over
the prior year. Revenues from consumables increased by an
aggregate of $13.7 million, or 12
percent, over the prior year. The company reported net income
of $27.5 million, including gain from
the company's litigation settlement in the second quarter of fiscal
2013, compared to $13.1 million for
the prior year. The company's effective tax rate in fiscal
2013 and 2012 was 35 percent. The company reported diluted
net income per share of $1.23
(calculated based on 22,381,000 shares) for fiscal 2013, compared
to $0.58 per share (calculated based
on 22,462,000 shares) for fiscal 2012.
Other Reported Information: Total sales in the
medical market for the fourth quarter of fiscal 2013 were
$6.3 million, a decrease of 18
percent compared to the same period last year. Medical sales
worldwide, excluding sales to the U.S. government, during the
fourth quarter of fiscal 2013 were $5.7
million, a decrease of 20 percent compared to the same
period last year. Total sales in the veterinary market for
the fourth quarter of fiscal 2013 were $42.9
million, an increase of 25 percent, compared to the same
period last year. Total medical and veterinary reagent disc
sales for the fourth quarter of fiscal 2013 were $27.0 million, an increase of 14 percent compared
to the same period last year. Non-cash compensation expense
recognized for share-based awards during the fourth quarter of
fiscal 2013 was $1.8 million,
compared to $1.5 million for the same
period last year.
Clint Severson, chairman and
chief executive officer of Abaxis, said, "We are pleased with the
operating results achieved in the fourth quarter and fiscal year
2013. Instrument sales across the board, including both the
veterinary and the medical markets, were up 31 percent for the
year. Reagent disc unit sales for the year were up 11 percent
to a record 7.5 million units. Additionally, we are gratified
that the ten-year compounded annual growth rate in our total
reagent disc unit sales is greater than 15 percent. Sales in
North America and internationally
were up 18 percent and 20 percent, respectively. One of the
key strengths of the company is our higher margin consumable sales,
which increased 16 percent in the fourth quarter and represented 72
percent of total fourth quarter revenue. We remain firmly
focused on maximizing this core component of our business which
constitutes our recurring revenue stream."
"Fiscal year 2013 marks the 12th
consecutive year of profitability for Abaxis. Given the
challenging global macroeconomic conditions of the past five years,
we are extremely proud of our ability to operate effectively and
profitably in uncertain times," continued Mr. Severson. "The
financial underpinnings of the company are very strong. We
maintain a solid cash position, which provides us a level of
stability during these difficult times. During fiscal year
2013, we paid a special one-time dividend to our loyal
shareholders. Looking ahead, we are excited about our
strategic initiatives and the opportunities with our new
distributors, Abbott Point of Care,
Inc. for medical products and MWI Veterinary Supply, Inc. for
animal health products. Our expectation is that as the
medical market distribution channel becomes more developed in the
coming quarters, medical market products will also become
consistent double-digit growers. We are excited with the
possibilities ahead."
Conference Call
Abaxis has scheduled a conference call to discuss its results at
4:15 p.m. Eastern Time on
Thursday, April 25, 2013.
Participants can dial (877) 317-6789 or (412) 317-6789 to access
the conference call, or can listen via a live Internet web cast,
which is available in the Investor Relations section of the
company's website at http://www.abaxis.com. A replay of the
call will be available by visiting http://www.abaxis.com for the
next 30 days or by calling (877) 344-7529 or (412) 317-0088,
confirmation code 10027780, through May
1, 2013. This press release is also available prior to
and after the call via Abaxis' website or the Securities and
Exchange Commission's website at http://www.sec.gov.
About Abaxis
Abaxis develops, manufactures, markets and sells portable blood
analysis systems for use in any veterinary or human patient-care
setting to provide clinicians with rapid blood constituent
measurements. The system consists of a compact, 5.1 kilogram
(11.2 pounds), portable analyzer and a series of single-use plastic
discs, called reagent discs that contain all the chemicals required
to perform a panel of up to 13 tests on veterinary patients and 14
tests on human patients. The system can be operated with
minimal training and performs multiple routine tests on whole
blood, serum or plasma samples. The system provides test
results in less than 12 minutes with the precision and accuracy
equivalent to a clinical laboratory analyzer. The veterinary
business also provides to the animal health and research market a
line of hematology instruments for point-of-care complete blood
counts (CBC), a specialty instrument to screen for and detect
clotting disorders and to measure equine fibrinogen levels, a
handheld instrument for the rapid assessment of certain critical
care tests and rapid point-of-care tests for Heartworm infections,
Parvovirus, Giardia and Lyme disease. Abaxis, through its
AVRL division, provides routine laboratory testing as well as
specialty testing for veterinarians nationwide.
Use of Financial Measures
To supplement the financial statements presented in accordance
with United States generally
accepted accounting principles (GAAP), Abaxis uses operating income
per share, a non-GAAP financial measure. The presentation of this
financial information is not intended to be considered in isolation
or as a substitute for, or superior to, the financial information
prepared and presented in accordance with GAAP. For more
information on this non-GAAP financial measure, refer to the table
captioned "Operating Income Per Share" included at the end of this
release. Abaxis defines operating income per share as
operating income divided by the weighted average outstanding
shares. Management uses this measure in comparing Abaxis'
operating results with historical performance and believes it
provides meaningful and comparable information to management and
investors to assist in their review of Abaxis' performance relative
to prior periods and its competitors.
Forward Looking Statements
This press release includes, and our conference call will
include, statements that constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 (the "Reform Act"), including but not limited to statements
related to Abaxis' cash position, financial resources and potential
for future growth, market acceptance and penetration of new or
planned product offerings, and future recurring revenues and
results of operations. Abaxis claims the protection of the
safe-harbor for forward-looking statements contained in the Reform
Act. These forward-looking statements are often characterized
by the terms "may," "believes," "projects," "expects,"
"anticipates," or words of similar import, and do not reflect
historical facts. Specific forward-looking statements
contained in this press release or in Abaxis' conference call may
be affected by risks and uncertainties, including, but not limited
to, those related to losses or system failures with respect to
Abaxis' facilities or manufacturing operations, fluctuations in
quarterly operating results, dependence on sole suppliers, the
market acceptance of Abaxis' products and services, the continuing
development of its products, required United States Food and Drug
Administration clearance and other government approvals, risks
associated with manufacturing and distributing its products on a
commercial scale free of defects, risks related to the introduction
of new instruments manufactured by third parties, risks associated
with competing in the human diagnostic market, risks related to
transitioning our medical sales to Abbott, risks related to the
protection of Abaxis' intellectual property or claims of
infringement of intellectual property asserted by third parties and
risks related to condition of the United
States economy. Readers should also refer to the
section entitled "Risk Factors" in Abaxis' Annual Report on Form
10-K, its most recent Quarterly Report on Form 10-Q and Abaxis'
other periodic reports filed with the United States Securities and
Exchange Commission. Forward-looking statements speak only as
of the date the statements were made. Abaxis does not
undertake and specifically disclaims any obligation to update any
forward-looking statements.
Financial Tables to Follow
ABAXIS,
INC.
|
Condensed Consolidated Statements of
Income
|
(In
thousands, except per share data)
|
(Unaudited)
|
|
|
Three
Months Ended
|
Twelve
Months Ended
|
|
March
31,
|
March
31,
|
|
2013
|
2012
|
2013
|
2012
|
Revenues
|
$
49,951
|
$
42,718
|
$
186,025
|
$
156,596
|
Cost of
revenues
|
23,768
|
19,337
|
87,794
|
71,493
|
Gross
profit
|
26,183
|
23,381
|
98,231
|
85,103
|
Operating
expenses:
|
|
|
|
|
Research and
development
|
3,229
|
3,150
|
13,577
|
12,246
|
Sales and marketing
|
11,296
|
11,204
|
46,943
|
39,618
|
General and administrative
|
2,672
|
2,588
|
12,825
|
13,782
|
Gain from legal settlement
|
-
|
-
|
(17,250)
|
-
|
Total
operating expenses
|
17,197
|
16,942
|
56,095
|
65,646
|
Income
from operations
|
8,986
|
6,439
|
42,136
|
19,457
|
Interest
and other income (expense), net
|
(65)
|
451
|
253
|
710
|
Income
before income tax provision
|
8,921
|
6,890
|
42,389
|
20,167
|
Income tax
provision
|
2,223
|
2,184
|
14,930
|
7,076
|
Net
income
|
$
6,698
|
$
4,706
|
$
27,459
|
$
13,091
|
Net income
per share:
|
|
|
|
|
Basic net income per share
|
$
0.30
|
$
0.22
|
$
1.25
|
$
0.59
|
Diluted net income per share
|
$
0.30
|
$
0.21
|
$
1.23
|
$
0.58
|
|
|
|
|
|
Shares
used in the calculation of net income per share:
|
|
|
|
|
Weighted average common shares outstanding - basic
|
22,081
|
21,693
|
21,946
|
22,084
|
Weighted average common shares outstanding - diluted
|
22,486
|
22,070
|
22,381
|
22,462
|
ABAXIS,
INC.
|
Condensed Consolidated Balance
Sheets
|
(Unaudited and in thousands)
|
|
|
March
31,
|
March
31,
|
|
2013
|
2012
|
Current
assets:
|
|
|
Cash
and cash equivalents
|
$
54,910
|
$
45,843
|
Short-term investments
|
23,354
|
21,689
|
Receivables, net
|
40,005
|
30,694
|
Inventories
|
26,786
|
19,597
|
Prepaid expenses and other current
assets
|
3,319
|
5,423
|
Net
deferred tax assets, current
|
4,589
|
4,151
|
Total current assets
|
152,963
|
127,397
|
Long-term
investments
|
17,000
|
23,442
|
Investment
in unconsolidated affiliate
|
2,613
|
2,626
|
Property
and equipment, net
|
25,330
|
24,296
|
Intangible
assets, net
|
3,122
|
3,990
|
Net
deferred tax assets, non-current
|
643
|
-
|
Other
assets
|
92
|
85
|
Total assets
|
$
201,763
|
$
181,836
|
|
|
|
Current
liabilities:
|
|
|
Accounts payable
|
$
8,123
|
$
6,381
|
Accrued payroll and related expenses
|
6,261
|
6,336
|
Accrued taxes
|
440
|
266
|
Other accrued liabilities
|
2,838
|
1,991
|
Deferred revenue
|
1,362
|
1,212
|
Warranty reserve
|
995
|
1,245
|
Total current liabilities
|
20,019
|
17,431
|
Non-current liabilities:
|
|
|
Deferred rent
|
729
|
641
|
Net
deferred tax liabilities
|
-
|
199
|
Deferred revenue
|
3,750
|
2,396
|
Warranty reserve
|
389
|
601
|
Notes payable, less current portion
|
682
|
783
|
Total non-current liabilities
|
5,550
|
4,620
|
Total liabilities
|
25,569
|
22,051
|
Shareholders' equity:
|
|
|
Common stock
|
121,019
|
110,063
|
Retained earnings
|
55,133
|
49,697
|
Accumulated other comprehensive
income
|
42
|
25
|
Total shareholders' equity
|
176,194
|
159,785
|
Total liabilities and shareholders'
equity
|
$
201,763
|
$
181,836
|
Operating Income Per Share
|
(In
thousands, except per share data)
|
|
Three
Months Ended
|
Twelve
Months Ended
|
|
March
31,
|
March
31,
|
|
2013
|
2012
|
2013
|
2012
|
Shares
used in the calculation of operating income per share:
|
|
|
|
|
Weighted average common shares outstanding - basic
|
22,081
|
21,693
|
21,946
|
22,084
|
Weighted average common shares outstanding - diluted
|
22,486
|
22,070
|
22,381
|
22,462
|
|
|
|
|
|
Operating
income per share - basic
|
$
0.41
|
$
0.30
|
$
1.92
|
$
0.88
|
Operating
income per share - diluted
|
$
0.40
|
$
0.29
|
$
1.88
|
$
0.87
|
|
|
|
|
|
|
|
|
|
|
Revenues by Geographic Region
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
Three
Months Ended
|
Twelve
Months Ended
|
|
March
31,
|
March
31,
|
|
2013
|
2012
|
2013
|
2012
|
North
America
|
$
41,898
|
$
35,429
|
$
152,774
|
$
128,969
|
International
|
8,053
|
7,289
|
33,251
|
27,627
|
Total
revenues
|
$
49,951
|
$
42,718
|
$
186,025
|
$
156,596
|
|
|
|
|
|
|
|
|
|
|
Revenues by Customer Group
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
Three
Months Ended
|
Twelve
Months Ended
|
|
March
31,
|
March
31,
|
|
2013
|
2012
|
2013
|
2012
|
Medical
Market
|
$
6,277
|
$
7,682
|
$
31,643
|
$
30,404
|
Veterinary
Market
|
42,916
|
34,256
|
150,510
|
122,253
|
Other
|
758
|
780
|
3,872
|
3,939
|
Total
revenues
|
$
49,951
|
$
42,718
|
$
186,025
|
$
156,596
|
SOURCE Abaxis, Inc.